Some of the things I noticed on GU -
a) the pair doesn't consolidate around the pivot point so much.
b) Normally, when price breaks through a level, it then becomes a good S-turned-R (or vice versa) level.
While I was happy doing some chart watching, I did miss a really nice opportunity to take a trade today. Cable had popped up at the start of the European session, and was breaking Asian highs. However, because I wasn't paying attention to current price action, I didn't see that it had formed a nice long wick on the daily pivot point. The pair had also formed bearish divergence. With no reason for it's rise, I could have faded the move.
So I'm a little annoyed today, but hey, I did get some work done. Now, I need to stay disciplined and make sure I mark down my observations everyday, otherwise they'll be useless. So far, I've got one month's worth of data on EURUSD and GBPUSD. Yes, it's a small sample size, but if I have more time, I'll try to go back further and observe what happened in the past.
On Tuesday September 7th, 2010 at 01:06AM by dudleymuggins Like - 0 People
Hey Paolo, keep doing the hard work on this and it will pay off. However, do not just look at the daily PP and S!,R1 etc. Look how they confluence with other support/resistance (supply/demand) areas. For example, if you look left on your chart, you will notice a supply zone just above the pivot line. If you draw a box (zone) around it and extend it right, you will see this zone and the pivot halted the upward move. There was also a Murray Math line there. So we had a confluence of 3 S/R lines/Zones. So always look left at the daily PPs to see if you have a supply or demand zone confluence. So keep up the good work and hopefully you will get there.Regards,
Dudley
On Tuesday September 7th, 2010 at 03:27PM by virgiliolayug Like - 0 People
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